Relevance Of Capital Budgeting For Decision Making In Public Sector Organization (A Study Of Ikot Ekpene Local Government Council.)

ABSTRACT

The study is to investigate capital budgeting and its relevance for

decision making in public sector with reference to lkot Ekpene Local

Government as a case study, this was for the purposes of determine

capital budgeting techniques that should be adopted or used for

decision making in public sector, forms of investment to embark upon

by the Local Government council and challenges facing capital

budgeting processes in public sector. To achieve the objective of the

study descriptive research design •was used. A total of 130

questionnaires were administered to selected staff of 8 departments

of the council which 50 were completely filled and returned which

represented 38% of the administered questionnaire. Data from the

departments of Ikot Ekpenë Local Governmenf were used. In testing

the hypothesis pearson product moment correlation analysis was

used. Findings reveals that, from the hypothesis tested, there is a

significant relationship between capital budgeting and decision

making in public sector and Ikot Ekpene Local Government should p

embark on capital budgeting and follow its processes which in turn

helps the council to improve in productivity and good governance. It

therefore conclude that capital budgeting is an indispensable tool in

Ikot Ekpene Local Government council when taking long-term

decision. Finally it is commended that staff of the council should be

trained on capital budgeting since the significant proportion of the

counáil expenditure is on long-term product.